On January 10, 2024, the US Securities and Exchange Commission (SEC) announced a historic decision.
The financial regulator approved applications for a place in Bitcoin (BTC) for the first time. exchange traded fund (ETF) or stock market funds, good.
The crypto market is now looking forward to the next big decision the SEC will have to make, which is for a spot Ethereum (ETH) ETF. SEC official Hester Peirce certainly seems hopeful.
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The lawsuit that led to the approval of the Bitcoin ETF
Before the SEC approved 11 spot Bitcoin ETF applications on January 10, it was sued by Grayscale Investments. The world's largest crypto fund manager wanted to convert his massive Bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into an ETF.
However, the SEC rejected the application and Grayscale then decided to take the regulator to court. The judge then ruled that the SEC had not adequately justified why it rejected Grayscale's application. Therefore, the SEC was forced by the judge to consider Grayscale's application.
This led to the SEC deciding this month to approve all Bitcoin ETF applications. SEC Chairman Gary Gensler himself admitted that the lawsuit played an important role in the regulator's decision.
No lawsuit is required for the Ethereum ETF decision
According to Hester “Crypto Mom” Peirce, such a lawsuit is not necessary when it comes to applications for spot Ethereum ETFs. The SEC official said the following in an interview with Coinage Media:
“We shouldn't need a court to tell us what we're doing is 'arbitrary and capricious' so we can do it right. That's not how we're going to do our permits.”
Peirce got her nickname because she was much more friendly towards cryptocurrencies than her colleagues.
“Having learned from the court that our approach was wrong, I think these lessons will certainly stay with us“,” said Peirce.
However, years ago she was optimistic that the SEC would quickly approve a Bitcoin ETF.
Currently, the market assumes that the SEC will not make a decision on Ethereum ETF applications until the end of May. Then some final deadlines fall.
However, analysts at JPMorgan believe the chance of approval is less than 50%.
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